The United Auto Workers (UAW) said workers at a battery manufacturing joint venture of General Motors (GM) and LG Energy Solution have overwhelmingly approved a first contract with the company. Nearly 1,000 UAW members voted to ratify their first local agreement with Ultium Cells, the firms’ JV focused on battery cell technology.
UAW workers at the Spring Hill, Tennessee plant manufacture battery cells for electric vehicles produced at the neighboring assembly plant, such as the Cadillac Lyriq.
Battery plants such as these have become increasingly important to GM and the other Detroit Three automakers, Ford (F) and Chrysler-owner Stellantis (STLA), as well as for the union. Ultium Cells agreed to recognize the UAW union at the Tennessee plant last September after workers at the JV’s plant at Warren in northeast Ohio voted to join the union in 2022. The Ohio workers agreed a new contract in 2024 that delivered significant wage increases. EV plants were among the major obstacles in talks between the UAW and Detroit Three that led to a six-week strike in 2023.
UAW Backs Tariffs
While battery cell plants are increasingly a battleground between the automakers and UAW, so too is the field of free trade and tariffs.
President Donald Trump handed GM and other automakers a one-month reprieve from tariffs imposed on Mexico and Canada, after pressure from the industry and warnings about significant costs increases and destruction of jobs. After the White House confirmed tariffs of 25% on Canada and Mexico earlier this, the American Automotive Policy Council (AAPC), a lobbying group that represents all three of the big Detroit carmakers, called for an exemption for the industry.
The pressure seemed to work but underscored the gap between the automakers and the UAW. On Tuesday the UAW issued a statement backing tariffs, saying that they are a powerful tool for “undoing the injustice of anti-worker trade deals.”
In addition to tariffs on Canada and Mexico, the White House is also considering minimum 25% tariffs on all auto imports to the U.S., slated to begin April 2nd.
“The UAW is in active negotiations with the Trump Administration about their plans to end the free trade disaster,” the union said. “We look forward to working with the White House to shape the auto tariffs in April to benefit the working class.”
Is GM a Good Stock to Buy?
Overall, Wall Street has a Moderate Buy consensus rating on GM stock, based on nine Buys, five Holds and two Sells. The average GM price target of $59.69 implies about 23% upside.
